METLEN Energy & Metals has unveiled a €295.5 million investment to develop an integrated production line for bauxite, alumina, and gallium, with the final investment decision made on Thursday.
The project will take place in Agios Nikolaos, Boeotia, within the “Aluminium of Greece” facility, and aims to significantly boost Europe’s production capacity for these critical raw materials.
The planned production expansion includes an annual capacity of 2 million tonnes of bauxite, 1.265 million tonnes of alumina (up from 865,000 tons currently), and 50 metric tonnes of gallium, a material that has not been produced in Europe before. All three materials are on the European Union’s list of Critical Raw Materials (CRMs).
Key Investment Components The investment will fund several sub-projects, including the development of new bauxite mining deposits, the creation of infrastructure and equipment for gallium production, expansion of alumina capacity, energy supply initiatives, and port and infrastructure upgrades. The project is designed to make a significant contribution to Europe’s autonomy in critical raw materials, reducing dependence on external suppliers, particularly China, which currently dominates gallium production.
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Commitment to Strategic Autonomy Evangelos Mytilineos, President and CEO of METLEN, emphasized the importance of this investment for Europe’s self-sufficiency and Greece’s growing role in the global industrial map. He stated, “This new investment strengthens Europe’s position in critical raw materials, shields European industry from external dependencies, and solidifies METLEN’s role in the transition to greener, more resilient industrial practices.”
Gallium, which is a by-product of bauxite refining, is mostly produced in China. The restrictions imposed by China in July 2023 on gallium exports highlighted vulnerabilities in global supply chains. METLEN’s investment in gallium production is set to restore European imports, boosting the continent’s strategic autonomy and supporting key industries, from energy transition technologies to defense.
Environmental and Economic Benefits METLEN’s project will also introduce environmentally friendly technologies to minimize carbon emissions and make energy use sustainable through synergies with METLEN’s Energy Sector. The company projects that these materials, worth around €1 billion, will be primarily exported to Europe and North America, supporting global production in critical sectors such as telecommunications, LED lighting, and permanent magnets.
The investment has received the STEP SEAL of excellence from the European Commission, recognizing its contribution to Europe’s CRM autonomy. The project is scheduled to begin production of bauxite in 2026, with alumina and gallium production commencing gradually from 2027, reaching full capacity by 2028.
Source: pagenews.gr